Steve Beckers

Gong Mingxin visited the Czech Republic for the third time: deepening industrial cooperation with semiconductors as the axis [Exclusive Interview] Executive Yuan Secretary-General Gong Mingxin visited the Czech Republic for the third time at the end of August 2023, optimistic about the country benefiting from the semiconductor cluster effect, particularly after TSMC's investment in Germany. The Ministry of Economic Affairs plans to establish a service center in the Czech Republic to assist Taiwanese manufacturers. The trip aimed to deepen industrial cooperation amid global challenges such as the U.S.-China trade war and the COVID-19 pandemic, which highlighted the strategic importance of semiconductors. Gong emphasized that while TSMC's factory is in Germany, supply chains can also extend to the Czech Republic due to its geographical advantages. During his visit, he engaged with local officials and visited potential investment sites, including Usti, which he views as an emerging investment hub due to its proximity to Dresden. The Taiwanese government is keen on fostering connections with Czech students to enhance semiconductor expertise through scholarship programs. To support long-term industrial ties, the Ministry of Economic Affairs will focus on understanding manufacturers' needs and assisting them in navigating local investments. Gong believes that as global supply chains reorganize, the partnership between Taiwan and Central and Eastern Europe, particularly in semiconductors, will strengthen. #Semiconductors #Taiwan https://lnkd.in/gsmvtuMq

Korean media predicts Q3 revenue to be flat, Samsung’s chip sales leader is not guaranteed South Korean media predicts TSMC may surpass Samsung Electronics in third-quarter revenue, potentially regaining its lead in global chip sales. Samsung's preliminary report shows a 17.2% year-on-year revenue increase, reaching a record 79 trillion won (approximately US$57.7 billion). A detailed financial report will be released on October 31. Samsung's device solutions (DS) department, covering its chip business, is expected to generate 28.56 trillion won (US$20.86 billion) in revenue, subject to fluctuations. TSMC, however, reported a significant 39% revenue increase to NT$759.69 billion (about US$23.5 billion). If Samsung's DS division falls short of market expectations, it risks losing its lead to TSMC. Industry insiders warn that slower chip demand recovery could affect Samsung's performance, potentially undermining its competitive position. TSMC’s growth is driven by strong demand for AI chips and contracts with Nvidia, while Samsung struggles in this segment. Additionally, TSMC holds a dominant 62.3% market share in wafer foundry, significantly outpacing Samsung’s 11.5%. Compounding Samsung's challenges, its non-memory chip sectors, including wafer foundry and system LSI, are projected to face losses exceeding 1 trillion won in the third quarter due to low capacity utilization and poor order volumes. #Semiconductors #Taiwan https://lnkd.in/gAJqyNg5

TSMC’s target price hike is coming 00904, interest is filled within seconds of opening TSMC's strong third-quarter performance has driven remarkable results for the Shin Kong Taiwan Semiconductor 30 ETF (00904), leading to record-high dividend payouts. On October 21, interest for the ETF's ex-dividend was filled in seconds, making it the fastest among Taiwan stock ETFs that month. Similarly, other ETFs like CITIC Growth High Dividend (00934) and Taishin Sustainable High Dividend Small and Medium-sized Enterprises (00936) also saw rapid interest fulfillment, concluding their processes within four days. TSMC's success has uplifted semiconductor stocks, including silicon-KY, Xinhua, Liwang, and Creative, which experienced significant price increases on October 21. Stocks related to artificial intelligence, such as Shixin-KY and Parade-KY, showed pronounced jumps in value, reflecting strong investor interest in the sector. Anticipation is building for upcoming earnings reports from MediaTek, UMC, and Realtek, likely to intensify focus on semiconductor investments. The manager of the Shin Kong Taiwan Semiconductor 30 ETF underscores TSMC's pivotal role in the global AI supply chain over the next five years. Despite ramping up factory expansions, demand for TSMC's advanced production capabilities, especially for AI-related products, currently outstrips supply. Insights from Shin Kong's investment team suggest even doubling production capacity in 2024 and 2025 won't satisfy leading AI manufacturers, highlighting TSMC's critical importance in the semiconductor recovery cycle and AI evolution. With surging global demand for AI servers and the upcoming mass production of NVIDIA's B-series chips, market sentiment around Taiwanese semiconductor manufacturers remains positive. Anticipated growth in orders for AI and high-speed computing reinforces this outlook, indicating it may be an advantageous moment for investors to engage with semiconductor-related ETFs while valuations remain attractive. #Semiconductors #Taiwan https://lnkd.in/dU8E2QqT

TSMC builds German green wafer fab expert: replicating sustainable manufacturing experience TSMC held a groundbreaking ceremony for its green wafer manufacturing plant in Dresden, Germany, attended by significant political figures including German Chancellor Olaf Scholz and EU President Ursula von der Leyen. The factory represents an investment of over 10 billion euros, with a planned monthly production capacity of 40,000 12-inch wafers and the creation of approximately 2,000 jobs. TSMC aims to achieve 100% renewable energy usage by 2040, leveraging Germany's strong renewable energy sources. The facility will prioritize sustainability through energy-saving technologies and water recycling, and it is expected to influence semiconductor process technology development across Europe. The feasibility of a second factory depends on governmental strategies and local demand, especially given the current weak automotive semiconductor market in Europe. #Semiconductors #Taiwan https://lnkd.in/g-6pqeFi

"News from various newspapers" The Czech Republic will become a new European center for Taiwanese semiconductor companies The Czech Republic is positioning itself as a new European center for Taiwanese semiconductor companies, following TSMC's groundbreaking on a new plant in Dresden, Germany. An inter-ministerial committee from Taiwan, led by Secretary-General Gong Mingxin, visited the Czech Republic to explore the investment environment for semiconductor development, focusing on Usti as a potential investment location. The Czech government offered tax incentives to attract Taiwanese companies. Nearly 20 Taiwanese manufacturers, primarily from the semiconductor supply chain, participated in the delegation, with indications of interest in establishing operations in Prague and Usti. Czech officials expressed support for this initiative, emphasizing collaboration on talent training, investment environment, and services. Additionally, Taiwanese business organizations highlighted the suitable investment climate in Usti for semiconductor supply chain firms. There is a direct flight connecting Taipei and Prague, enhancing the potential for cooperation between Taiwan and the Czech Republic in the semiconductor industry. #Semiconductors #Taiwan https://lnkd.in/gA4TruJM

The #selling #pressure on previously released #DDR4 #memory #modules has eased somewhat, leading to a recent modest rebound from a low of $0.9 at the end of 2023. However, with end #consumer demand showing no significant improvement, this rebound is expected to be limited. The rise in #DDR5 #prices can be attributed primarily to #Samsung's tight supply of its #1alpha nm process, which has shifted towards #HBM3e production. Additionally, there have been specific inquiries in the #market recently, contributing to a slight price increase. Specifically, the price of DDR4 1Gx8 2666MT/s modules rose by 1.07% from $1.875 to $1.895 over the past week. #DRAM #DRAMprice

Gong Mingxin visited the Czech Republic for the third time: deepening industrial cooperation with semiconductors as the axis Gong Mingxin, the Executive Yuan Secretary-General, visited the Czech Republic for the third time in late August 2023 to enhance industrial cooperation, particularly in semiconductors. The visit was optimistic, coinciding with TSMC's groundbreaking of a factory in Germany, and aimed to position the Czech Republic as a strategic entry point for Taiwanese manufacturers into the European market. The Taiwanese semiconductor industry plays a critical role globally, especially amid increasing protectionism following the U.S.-China trade war and the COVID-19 pandemic, which highlighted the industry's strategic importance. During his visit, Gong noted the Czech Republic's potential for becoming a semiconductor supply chain cluster, referencing a previous trip where he identified the area as ideal for such development. The discussions included the possibility of TSMC establishing a facility in the Czech Republic, though Gong emphasized the high costs associated with building such a factory. Instead, he highlighted the benefits of Usti's proximity to Dresden, which could serve as a prime location for investment. Gong's delegation also involved representatives from 16 semiconductor supply chain companies, showcasing strong interest in potential investments in the Czech market. His meetings included discussions with Czech officials, aiming to understand local needs while promoting semiconductor cooperation and investment opportunities. Plans for setting up a Taiwanese service center in the Czech Republic were announced to streamline support for manufacturers, providing a base for Taiwanese businesses interested in the region. Gong Mingxin underscored that while the current industrial landscape may seem challenging, it offers significant opportunity for future growth and development in conjunction with Taiwan's semiconductor expertise. #Semiconductors #Taiwan https://lnkd.in/g5BHyGSK

Taiwan's semiconductor industry is set for significant growth, with a projected production value increase of 16.5 percent next year, reaching NT$6.17 trillion (approximately US$192.28 billion). Strong demand for artificial intelligence (AI) and high-performance computing (HPC) devices like servers and data centers is driving this growth, contrasted with a global semiconductor growth rate of 12.5 percent, reaching US$684 billion. The foundry sector is expected to lead this expansion, with a 20.1 percent increase in production value to NT$3.86 trillion. Demand for advanced chips using 3-nanometer and 2-nanometer technologies is significantly driven by generative AI applications. Taiwan Semiconductor Manufacturing Company (TSMC) generates over half of its revenue from HPC-related chips and plans to be the first to offer 2-nanometer technology next year. The chip packaging and testing service sector is also projected to grow by 12.7 percent to NT$700 billion, aided by advanced packaging technologies that meet the needs of AI and HPC devices. Rising sales in smartphones, PCs, and consumer electronics are expected to further bolster the industry. Notably, the advanced packaging market is anticipated to exceed traditional chip packaging, representing about 51 percent of the total market. The Industrial Technology Research Institute (ITRI) has revised its growth forecast for Taiwan's semiconductor producers to 22 percent, or NT$5.3 trillion, marking the highest annual increase since 2021. This revision reflects a rapid acceleration in the foundry sector, now expected to rise by 27.5 percent. Local chip designers are also anticipated to grow by 16.5 percent, a significant upward adjustment from 5.1 percent. Conversely, forecasts for chip packagers and testers have been reduced to 8.6 percent and 5.2 percent, respectively. #Semiconductors #Taiwan https://lnkd.in/gscnGdDC